Philippines vital in chip supply chain – Blinken

March 20, 2024 | 12:00am

MANILA, Philippines — The Philippines is seen as a critical partner of the US in promoting a resilient semiconductor supply chain, according to US Secretary of State Antony Blinken.

“The Philippines is a thriving partner and a critical partner – indeed, an increasingly critical partner – in the semiconductor supply chain, making sure that we have a strong, resilient supply chain,” Blinken told reporters following a tour of the semiconductor manufacturing facility of Amkor Technology Philippines Inc. in Muntinlupa yesterday.

Blinken said the COVID-19 pandemic has shown the importance of a resilient supply chain.

According to Blinken, several US firms have invested for many years in the Philippines’ semiconductor industry, which is providing three million jobs in assembling, testing and packaging.

The industry also accounts for 20 percent of exports and 12 percent of the country’s gross domestic product.

The US government wants to strengthen its longstanding partnership with the Philippines in the semiconductor industry.

“We continue to look for ways to strengthen even more the partnership between our countries,” Blinken said.

Under the CHIPS Act, he said there is a fund that the State Department is responsible for to make further investments in partner countries to build their capacity.

Last November, the US Department of State announced that it would collaborate with the Philippine government to explore opportunities to grow and diversify the global semiconductor ecosystem through the International Technology Security and Innovation Fund, created under the CHIPS Act.

Blinken said the US sees great potential in the Philippine semiconductor industry.

The US official said he is also “optimistic about all that can be done going forward in ways that will continue to provide even more good jobs here in the Philippines, will strengthen the supply chains, build their resilience and help power economies going into the next part of the 21st century.”

US Secretary of Commerce Gina Raimondo, who led the US presidential trade and investment mission to the Philippines last week, said the US wants to help the Philippines double its semiconductor facilities.

Raimondo said there is an opportunity for the Philippines’ semiconductor industry, as the US wants to diversify its chip supply chain.

She added that the Philippines is at the top of the list of countries being eyed as potential locations for US companies that want to have a more resilient supply chain.

Amkor Technology Philippines president and country manager Norberto Viera said the company sees the US’ intention to help expand the Philippine semiconductor industry as a positive development.

“We are very happy because that means to say, the US is trying to expand the semiconductor industry, going to promote the Philippines as one of the supply chain source,” Viera said.

In terms of support the semiconductor industry would need from the US, Viera cited preferential treatment for their products entering the US market and training for the workforce, particularly engineers.

“The Philippines is known to have a lot of young, industrious and skilled workers because we graduate thousands of engineers every year. And those resources, if properly trained, can be a big factor for the Philippines to grow,” Viera said.